Despite sanctions from the US and its allies, trade between India and Russia has grown rapidly. In 2023, the trade between the two countries nearly doubled, surpassing $65 billion. According to a recent Reuters report, this information was provided by Russia’s largest bank, Sberbank.
Payments with India Are Smooth
Sberbank’s Deputy CEO, Anatoly Popov, said that trade with India is growing quickly, and payments between the two countries are being processed smoothly without any issues. However, Russia is facing difficulties in processing payments with other countries, which has affected its trade with them.
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Russia Becomes a High-Income Country Despite Sanctions
After Russia’s invasion of Ukraine in February 2022, several economic sanctions were imposed on the country, led by the US and Western nations. These sanctions aimed to isolate Russia and weaken its economy. However, the sanctions don’t seem to be having a significant effect. Recent data from the United Nations revealed that despite the war and sanctions, Russia has managed to enter the list of high-income countries.
Sberbank’s Key Role in India-Russia Trade
Sberbank, Russia’s largest bank, plays a crucial role in trade between India and Russia. It handles 70% of the payments for Russia’s exports to India. According to a senior bank official, after Western sanctions in 2022, India became a major buyer of Russian crude oil. This led to a significant increase in trade in 2023, with the total crossing $65 billion.
Sberbank Expands Workforce in India
Speaking to Reuters before the Eastern Economic Forum, Popov mentioned that after the sanctions, Russian companies showed more interest in the Indian market, as it offered them new opportunities. The growth in India-Russia trade has led Sberbank to increase its workforce in India by 150%. The bank has expanded its staff in offices located in Delhi, Mumbai, and Bengaluru.
